SBI Forecasts Strong GDP Growth in FY 2023, Manufacturing Sector on Path to Recovery - News

The State Bank of India (SBI) recently predicted that FY 2023 GDP growth will exceed 7 percent and the manufacturing sector will recover. SBI’s ecowrap study stated that Q4 FY23 GDP growth was 5.5 percent, despite global economic concerns. RBI expects 6.5 percent GDP growth in 2023-24, with Q1 at 7.6 percent. 
SBI’s artificial neural network (ANN) model, based on 30 high-frequency indicators from key industries and tuned/trained to project GDP numbers, forecasts Q4FY23 GDP growth at 5.5 percent. The RBI expects Q4FY23 Real GDP growth of 5.1 percent and NSO growth of 7.0 percent for FY23. 
In April 2023, the International Monetary Fund (IMF) world economic outlook report reduced the baseline growth prediction from 3.4 percent in 2022 to 2.8 percent in 2023 and 3.0 percent in 2024. Advance estimates (AEs) are predicted to decline significantly from 2.7 percent in 2022 to 1.3 percent in 2023. China’s GDP is predicted to rebound to 5.2 percent in 2023 and 4.5 percent in 2024. The SBI noted that global headline inflation in the baseline case will fall from 8.7 percent in 2022 to 7.0 percent in 2023 due to reduced commodity prices, but core inflation will fall more slowly.